Welfare Effects of Nonlinear Electricity Pricing
研究韩国居民阶梯电价对家庭福利和社会福利的影响，通过理论模型和需求估计计算不同定价方案下的福利变化。
Block pricing is widespread among electricity and water utilities to protect low-income households and to encourage energy conservation through higher marginal prices. However, whether a block pricing system achieves those objectives is controversial. In this article, we analyze the impact of alternative electricity pricing systems on the welfare of consumers for the case of residential electricity block pricing in Korea. To do this, we first develop a theoretical model to compute each household’s welfare change under alternative pricing systems. Then, we estimate the residential electricity demand function and compute every household’s electricity consumption and expenses under alternative pricing systems.Finally, we compute each household’s welfare change and social welfare to draw policy implications.